No more deeps discounts on e-commerce

E-commerce business have become a part our day-to-day lives. When you’re not in the mood to brave the holiday crowd — or maybe you’re just feeling lazy — online shopping offers an easy, not to mention efficient, reprieve.

Thenew directivesissued by the Indian government aren’t just about how it’s going to affect Walmart’s bottom line after it’s expensive Flipkart acquisition or how either company is going to re-align its supply chain — it’s about how it’s going to affect your shopping experience come February 1, 2019, when the changes come into effect.

Ultimately, it’s not the sellers or the e-commerce platforms that are going to bear the brunt. It’s going to be online shoppers, like you and me, who are now accustomed to deep discounts, who may end up paying the price — quite literally — at least in the short run.

No more deep discounts

Diwali, Holi and Christmas — even Republic Day and Independence Day — were joyous occasions with Flipkart (including its subsidiaries Jabong and Myntra) and Amazon offering huge discounts of up to 80%. Even the average rate of discounts leveled out is at somewhere around 60%.

Those discounts may be not be around anymore. Until and unless the e-commerce giants can find a way around the new policy implemented by the Indian government, shopping online may not be as affordable.